news Domain King says last 4 weeks were slowest ever

[NYJimbo]

https://twitter.com/x/status/1577987941078650880

 

[Alessandro Couteau]

Maybe if the guy and others here didn’t continue to push our industry into the ground by saying, “if ain’t .com / it’s shit”

we are in the web3 space now ^ not the web2 space ^ the internet is only going to continue to expand and grow > 2,000,000,000 sites online, you cannot limit them to just one .extension

Not even Bitcoin or Ethereum own their .com domain ^

How about Rick and the others feed the value of the domain industry as a whole through the investment of great names

Doesn’t matter if it’s .com

The people will listen to The King / seldom do they think for themselves

 

[Constantin S]

Expected that, but I bet things will improve starting this month.

 

[cabotower]

part of his strategy to get people to sell him their premium names for cut rate prices?

 

[Future Sensors]

Hi @Ron Jackson

Rick's statement appears to have been made based on sales data published by DN Journal. I saw you mentioned it briefly in the article. Some more background would be nice. Thank you.

 

[Surya Giri Kurniawan]

Rick is a very smart guy. I remembered him as a sherpa in Domain Sherpa show, he told Mike Cyger that he had 2500 bitcoin when others not thinking about investing in Bitcoin. That time Bitcoin is only about 150$ a coin. He has an ability to see what others can't see.

 

[spigiv]

Not arguing against a slow down but looking att Namebio sales data it is not slowing down significantly. September and August where quite similar in number of deals closed (12k or so reported) and first week of October is trending in a similar way.

I know everything is not reported in Namebio. However it is not that alarming of a downturn. Yes ecomomy is slowing, inflation going up and it will impact domains at some point but it is not as dramatic as the title and start post of the thread indicates - in my humble opinion looking at publicly available data…

 

[J.R.]

part of his strategy to get people to sell him their premium names for cut rate prices?

Recessions are temporary.
Things were record breaking good in 2021, when all that loose money was dropped on the economy.

To say Fed tightening is impacting VC funding levels to startups is a verifiable fact.

Knowing the economy is in recession shouldn't cause you to sell premium domains.

The knowledge is to inform you to stay as liquid as possible and not to be surprised if your domains don't sell at 2021 prices or deals don't happen because startups are on slashed budgets.

If you are forced to sell premium domains at clearance prices before Q4 2023, that's not on Rick or any other buyer - that falls on you.

Don't sell, hold.

 

[spigiv]

Recessions are temporary.
Things were record breaking good in 2021, when all that loose money was dropped on the economy.

To say Fed tightening is impacting VC funding levels to startups is a verifiable fact.

Knowing the economy is in recession shouldn't cause you to sell premium domains.

The knowledge is to inform you to stay as liquid as possible and not to be surprised if your domains don't sell at 2021 prices or deals don't happen because startups are on slashed budgets.

If you are forced to sell premium domains at clearance prices before Q4 2023, that's not on Rick or any other buyer - that falls on you.

Don't sell, hold.

I ask myself why one would be forced to sell of premium inventory. The cost of renewal/holding on is peanuts compared to cost of acquisition or cost of slashing prices wholesale for fine names.

Yes, many names cost renewing but a serious investor should not be that short on cash… I guess… IMO

 

[J.R.]

Not arguing against a slow down but looking att Namebio sales data it is not slowing down significantly. September and August where quite similar in number of deals closed (12k or so reported) and first week of October is trending in a similar way.

DNJournal focuses more on end user public sales.
NameBio includes a large percentage of domainer to domainer or expiry auction sales.

End users are being forced to pull back, while wholesale is unlikely to see much drop off. Perfect example would be the way an end user entered Drop Catch auction and bought Medal.com last quarter for $185K. This sort of action raises the avg. sales prices of expiry auction sales.

How much would Medal.com had cost Medal TV retail? $1M? $5M $10M?

 

[J.R.]

I ask myself why one would be forced to sell of premium inventory. The cost of renewal/holding on is peanuts compared to cost of acquisition or cost of slashing prices wholesale for fine names.

I can see why a domainer not paying attention to the trends from 2021 thru 2022 could be over-leveraged.

It happens during all market bubble where the boom entices many to overspend because the eventual bubble popping seems impossible or years away. The economic term is irrational exuberance.

For example, NFT prices looked like prices would go up forever, but now they have lost 97% of their value since 2021 peak. You had NFTS.com sell for $15 million back in August 2022. Would NFTS.com sell for $15M in Q4 2022, I don't think so.

Some domainers may have to sell premium domains to cover over-spending on good assets, not too surprising.

 

[bmugford]

Things move in cycles.

There are a lot of people sitting on massive losses now from crypto, NFT, meme/growth stocks, collectibles, etc.

During good times you plan for the bad times.

So far, I have not really seen the economy effect the reseller market. Average domains still go for very high prices at auction.

Brad

 

[AEProgram]

If your business is doing well now, you are the exception. Here are some headline from the past 24 hours

US Consumer Borrowing Rises More Than Forecast on Credit Card Use

• August total credit outstanding climbs more than $32 billion
• Revolving credit posts third-largest advance on record

This Week In Credit Card News: Americans Can’t Pay Off Debt Due To Inflation; Crypto’s Popularity Weakens

"Inflation Is Forcing 26% of Americans to Stop Paying Off Debts"

A lot of people are also seeing red in their investment accounts, especially if they got involved in the market in the past few years. Many people that got into the home buying craze in the past two years, are seeing those gains reverse.

Some big companies are ramping up firing and some are freezing hiring in certain departments.

Data from FedEx earlier today, again shows a slowdown.

One way to help with sales is to add or update the price with a long payment plan.

 

[lock]

End of warm weather and enjoying it more likely the reason.

 

[DN Fuel]

Hope things will get better!
Thanks for sharing.

 

[Mytz.com]

Hope things will get better!

 

[topdom]

Absence of big sales doesn't mean much. Maybe some are under progress.
But we don't see big .xyz sales recently.
One "problem": Lots of very rich guys are being arrested (and not for being rich).

We are living under an artificial deflation, and it will get a little worse.
But it can't be very bad, because good guys would be blamed at the end then.
(I mean, awake people would blame good guys, sleepy ones blame bad ones
they currently support; if things get very bad).
We will see some action, and excuses for results of that action.
For example we may see fake ww3, and things will change, but
the obvious excuse will be the wrong one.
WW3 is real and we are in it, but not between countries, and not a nuke war,
and it may not mean markets will do good or bad.
Some excess/artifical money may evaporate, but I think good guys will
try to protect ordinary guys, by preventing sharp changes in currency rates, gold prices,
etc,

 

[Soofi]

Maybe if the guy and others here didn’t continue to push our industry into the ground by saying, “if ain’t .com / it’s shit”

we are in the web3 space now ^ not the web2 space ^ the internet is only going to continue to expand and grow > 2,000,000,000 sites online, you cannot limit them to just one .extension

Not even Bitcoin or Ethereum own their .com domain ^

How about Rick and the others feed the value of the domain industry as a whole through the investment of great names

Doesn’t matter if it’s .com

The people will listen to The King / seldom do they think for themselves

I beg to differ Alessandro.

It's not Rick's money in my pocket/bank, so I'm never going to listen to what he's saying. Of course, being a sensible (domain/tech) investor, I will look at stats and data in front of me to put my money where I see best ROI.

A lot of this slow down is due to economic slowdown world-over as news reports suggest and this might be the starts of another economic depression coming.. Let's just hope we all make money and no one loses anything!!

 

[Fayaz Ahmed]

Smart people always find a way to make money, even when the economy in bad. Because, when the economy is good, it's time to sell and when the economy is bad, at least in some cases, it's time to buy.

You'll just have to know what to sell and what to buy when.

 

[topdom]

Some people trade some white stuff and make money ( because they are smart?). Not much to do with smartness alone, it is about, lots of things, but some experience, skills, environment, would hep a lot. Sometimes 1-byte of input makes enormous difference in everything (such as this drug is good versus this drug is bad). You don't need to be very smart to learn high school math, but then, you can give private lessons and make tons of money.

edit: written before "fixing" (post above and below).

 

[NYJimbo]

Rich people always find a way to make money, even when the economy in bad.

Fixed it.

 

[Fayaz Ahmed]

Fixed it.

LOL, thanks

Although, by definition, people who always find a way to make money, are rich. Sure.

 

[scithe]

I guess since I don't own any million dollar domains, I might not know what I am talking about. But I do feel like premium domains are still going to command premium prices while they are still relevant words.

Every day new businesses are being created on an assortment of domain names. Which leaves the remaining pool smaller and smaller.